Rockford public housing overhaul, conversion in progress

Jeff Kolkey Staff writer @jeffkolkey

Saturday

Oct 28, 2017 at 10:00 AM

ROCKFORD — Midway through a three-year plan to overhaul 679 Rockford Housing Authority housing units, 43 families have brand-new homes and the conversion of a large public housing complex into rent-assisted affordable housing is underway.

The improvements are paid for through a partnership between RHA and Wisconsin-based Gorman & Co., using a mix of private equity, loans and low-income housing tax credits.

The projects take advantage of a U.S. Department of Housing and Urban Development program used to convert public housing units into rental units under the federal Rental Assistance Demonstration program. It allows private developers to help finance public housing redevelopment.

Rent varies by development and is set by HUD based on market surveys. Residents pay up to 30 percent of income toward rent, with federal subsidies covering the remaining cost.

Meanwhile, RHA CEO Larry Williams said he is preparing to roll out new programs meant to help impoverished families learn soft skills needed to find and keep jobs that could help them become self-sufficient.

"You will see more from the RHA in terms of how we help our residents become workforce ready and with the skills needed for self-sufficiency," Williams said.

Here is an update on the RHA plan:

Orton Keyes, 633 Ranger St.

The 175-unit public housing complex is undergoing the largest reinvestment since it was built in 1972 as it is converted into rental assistance housing units. The Housing Authority will maintain 51 percent ownership of Orton Keyes when finished and the campus will operate under Gorman management.

No one is being relocated, but small groups of residents are being transferred to open units in Orton Keyes while renovations proceed a few units at a time over the next 12 to 18 months.

The $17.6 million project to rehabilitate and modernize the units includes new appliances, central air, laundry facilities, energy-efficient upgrades and a renovated community center. There will also be new security measures that include giving residents key fobs to enter the development, 60 new security cameras and automated license plate readers that monitor plates entering and exiting the complex.

The Grove, 690 S. New Towne Drive

Forty-three families have relocated to The Grove at Keith Creek in Phase I of a plan to deconcentrate poverty at the Fairgrounds Valley housing complex.

Home to 49 two- and three-bedroom units, each with a small outdoor space, central air and high-efficiency appliances, the Grove is an $11.8 million affordable housing development built this year on the city's east side. Six of the units are earmarked for market rate rentals.

The Grove was paid for with low-income housing tax credits facilitated by the Illinois Housing Development Authority. Gorman sells the credits to investors for cash to finance construction in addition to using traditional loans.

Fairgrounds Valley, 1015 W. Jefferson St.

With 43 families already moved to The Grove, the plan is to raze the 210-unit Fairgrounds Valley complex and replace it with 106 scattered housing sites in the region and 59 new single-family houses, duplexes and town houses.

The estimated $9 million project would scattered new housing sites across the region, not necessarily inside Rockford, Williams said. Plans are for Gorman to buy multifamily and single-family units with a focus on vacant properties.

The challenge, Williams said, is to avoid concentrating poverty elsewhere in the region.

Sixty units on Jefferson Street will be rebuilt where Fairgrounds now stands at a cost of an estimated $16 million. The Fairgrounds buildings would be replaced with modern single, multifamily and town homes.

Brewington Oaks, 505-515 Seminary St.

Plans are for the twin towers of Brewington Oaks to be demolished.

Williams said there are no plans to replace them. Although there are 418 units for seniors and the disabled located in the towers, just 100 or so are occupied. Occupancy has dwindled through attrition and as residents have transitioned to scattered site housing voucher programs.

Next month, the RHA will apply to HUD for permission to raze the structures. The approval process is expected to take up to 18 months to complete. A cost estimate is being computed for demolition and RHA officials are looking for ways to pay for it.

Jeff Kolkey: 815-987-1374; jkolkey@rrstar.com;@jeffkolkey

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